the number of bad banks continues to grow....as more borrowers fall behind on paying their loans. how the fdic is preparing for the possibility of more failures. plus...as the healthcare debate wages on...costs continue to grow. look forward to another year of double digit increases. what's behind the higher costs and how companies are responding. and...seven billion dollars and counting...the movie industry on it's way towards record numbers this year....will a trio of new releases from horror to hippies help? we'll find out on this edition of first business. slow grind hi year continues to continue for u.s. stocks will command a head of the last two trading sessions in the month of august if all this can hold onto positive gains it will be to the second pass in a row and that we are working and fighting the last six months of higher

and stock prices. effects of the month of august the dow is up about 4% of m clearly investors continued to be confident about the stock market in the economy but the opposite case tv talk about consumer confidence on mainstream on friday we're going to be getting consumer sentiment numbers since june that number has been down. pocketbooks of consumers getting pinched year in speaking of the friday numbers of personal income and spending is to keep him to wash their could be the saving rate which a short term can replenish those rainy day fund which will perhaps sowed the seed of long-term growth. the losses keep piling up for small and regional banks... and the fdic is beefing up its coffers anticipating a wave of bank failures in the coming months... take a look at how quickly the number of problem banks has grown... today it's up to 416... up from just 76 back in december 2007. so far this year... the fdic closed 81 banks across the united states ... there were 25 closures last year.. bringing the total to over 100 since the

credit crunch began. and the fdic says it's fully prepared to handle the fall out from continuing bank failures.. chairperson sheila bair said on thursday... "no matter how challenging the environment, the fdic has ample resources to continue protecting depositors as we have for the last 75 years." source: sheila bair, fdic chair ♪fullscreen quote: "no matter how challenging the environment, the fdic has ample resources to continue protecting depositors as we have for the last 75 years." tom.. sheila bair went onto say - no insured depositor has ever lost a penny of insured deposits.. the fdic has been planning for future failures since the crisis began unfolding last year. in the second quarter, the agency had 42 billion dollars in its deposit insurance fund. thanks to banks paying higher premiums ... the fdic has been able to beef up that insurance fund considerably... from about 13 billion in march. the agency also has the ability to borrow a half trillion dollars from the treasury department if it has to. experts say it's a sizeable cushion... considering small and regional banks will

continue to see losses from their portfolios... as they are forced to write down bad loans. most of the problems stem from real estate loans... causing 49% of the losses... followed by credit cards.. with 20%... and commercial and industrial loans...at 17% the entire banking industry lost three-point- seven billion dollars in the second quarter because of those bad loans. one estimate from rochdale securities predicts up to 200 more bank failures over the next couple of years. it's clear the fdic reconizes the situation is getting worse... and this week it took steps to make it easier for private equity firms to buy failed banks. under the new rules.. the fdic reduced tier 1 capital requirements for private equity buyers from 15% to 10% of all assets... but it's still well above the 6% ratio required of traditional bank holdings companies. it means private equity firms must hold more capital in reserves for every dollar lend

out...which ends up lowering their rate of return. some in the financial industry say it's about time the fdic made it easier for other firms to own banks. i think historically there's been protectionism in banking.. lot of banks should have failed..but they are still around.. and banks that could have been started from smart individuals never got started. jim cahn... is with vestian .. a wealth management firm... i asked him about the risk of private equity firms being too aggressive in managing banks.. he does *not believe that is a concern... cahn also points to private equity firms being able to attract top tier managers to run the banks on the downside.. however, private equity firms do *not have a lot of experience in the banking industry... and there may be issues about the relationship between the bank.. and other assets held by the private equity firm. but the bottom line for people like you and me that have bank accounts... jim cahn says we

won't be able to tell the difference between who owns a bank. i dont' think every day depositor see difference between a bank owned by private equity vs.. large bank.. in fact i would be surprised if if customers knew at all.. one thing might see.. private equity.. more aggressive advertising.. and we'll see whether the fdic's rule change will bring in more private equity interest... when bidding for the failed corus bank in illinois begins next week. still to come 40 years later, woodstock is back on the big screen....but the business model may be much different this time around. but first...the outlook on healthcare costs..what's expected in the upcoming year.

when congress comes back from its august recess in a couple of weeks, it may be no closer to a deal on health insurance reform. meantime, costs are expected to continue to rise through the next year, although at a little bit of a slower pace. john zern directs the u-s health and benefits practice at aon consulting. it's nice to see you welcome back. five years ago we're talking about health insurance costs rising at about 15% a year now rising about 10% a year still up in double digits but what the slower growth? i think a couple of reasons twice a year we conduct a survey of

healthcare trans. on average across product lines we see a 10 per 5% increase i think there is a lot of controlling factors when wellness is certainly starting to take hold. consumerism and better educated population that is no access to affordable land quality health care which helps to of those are two key reasons why we are seeing the trending downward of help care costs. but we're getting better. it will take a look at the plan differences from hmo to point of service plans and p p o c d eight are the consumer driven health-care plans. obviously still increasing it at a double-digit rate me take a look at the willingness to take a look at more consumer driven plans that helped drive down the rate of growth of we are in the middle of the reform debate will can respected way from we have seen in the marketplace? we spend a significant amount of time and losses talking with legislators to run health care reform. well this is a cornerstone of potential health care reform.

that is a big issue. i think the big area is also wrong chronic condition. you look at the age of population in the u.s. some key health risk factors are now smoking and obesity that the exercise can lead to chronic conditions such as diabetes to heart disease and treatment of and the avoidance of a chronic condition will also help us. when talking about credit conditions we can identify with health care span is. what the majority of those dollars to hone the those dollars go towards treating? when you look a survey results 30% of people who actually have health care costs are driving 65% of the spend so is a significant part of the population with a significant part of this band. that is where employers have refocused a lot of time and

attention and communication efforts when the project field. beyond medical insurance i want to take a look at dental and vision and coverage for us to cover all the still continuing to show their rolling waves of increases here what are some of these key drivers not only with dental and drug costs but the key drivers of wall with health insurance increases. i go back to some of the chronic conditions that the population has and you look at the increase in utilization of medical advances nursing physicians toward just that there are a variety of those that contribute to overall health-care costs and then no cost finally our companies responding to this are they still getting through their companies with 90 percent employment however these companies expecting and responding is a really tough time for employers with economic conditions a lot of the poorest i have laid people off or freeze or reduce salaries been swiping " we're seen with our client base and with a survey shows is that employers are looking to make plain design

changes but the key difference is the one to meet planned design changes for people who are utilizing the plan if i am healthy and vital have chronic conditions my expense should not be increasing to dramatically due employee contradiction employes are increasing plan designed for those who are utilizing the services. does that mean that those who are utilizing the service are expected to pay more quick remark absolutely. i sub health care reform with the end of the year? at the close but not in the initial form that the president and key congressional leaders were thinking it was born to look like. jomon with us he is the leader of the u.s. health and benefit practice as a on consulting. rabat online items after the show, head to our website to see what commodities may be telling us about the economy. plus, now that the cash for clunkers program is over...are the detroit three automakers making the same mistakes.. by increasing production in the face of weak demand? ...find out on our website...at first

businessx.com. in the past month, more than three quarters of a million americans just quit looking for a job. they didn't go back to school or have any other reason for quitting other than frustration. they don't think there are any jobs out there for them. another five million continue to look for work, but haven't had any success for more than six months. it is the toughest job market in a generationand next week we'll be sitting down with julie boh- key, a career development coach. tell us your stories, ask your questions at 312-660- 83-97or comments at firstbusiness-x-dot-com. still ahead the movie industry looks to set a new record this year....even in the midst of the recession...that's next.

the movie business continues to rake in the cashmore than $7 billion so far this year, on pace for a new record. and this weekend, what's old is new again with two horror franchisesand a woodstock movie, four decades later. david sikich is back with us. watching the movies and the movie industry breaking out some business clothing here i figured why not. i figured there is more than a few first business few words from the woodstock that's always want to put tie dye on. is that horror movies and hippies this week. there's been a great summer surge with the business in the

last two weekends to 37 million all weekends in the strategy that the studios have used going more r-rated movies has proven to be pretty smart taking woodstock is not going to have the same pool as final destination in holland to is the 1500 screens compared to 3000 grants. the to warm be isn't usually when horror movie and of to is lunacy. in taking the stock is a more gentle and more good hearted are spread to four weekends starting to gain traction. it harkens back the 40th anniversary woodstock 1970 was when the movie came out and what a success this thing was $600,000 budget 50 million at the box office and is 40 years ago taking woodstock can even hope. that's not going to be any type of comparison with that but you know there's also talk about how woodstock is so

important in terms of cultural and generation view point where woodstock movie is just important a financial standpoint and economic dollar of his time between 1971 all the studios were in big trouble and between old and new hollywood they're all losing up to combine $250 million and was a big slump in history. the rustling of back loss for cash mgm was looking to go to the hotel business and nothing was really working. this is a context where we the concert performer occurs when running battle when they approached making a movie one inmate and berate the swedish deal in history for $50,000 bought all movie and sound track rights. and only said the company but to pave the way for new hollywood the nonbusiness across portions across merchandising the way to get this young audience in the movie was in a phenomenon but he

said $50 million that will be $200 million today one of the biggest movies of the year and is been estimated that they have made $400 million over the years gone there was bought property. and it continues to stay for years later they can tap into with. taking was thought not from one brother if poke this feature is a unit of universal and general electric. how was it going after marketing compared to others? they're going after it a little bit part of the baby boomer audience in going for the young audience. they have been piggybacking on the specials path for year anniversary of v have taken note manager of that they have a star upcoming star dmitri martin who you have seen on comedy central and the daily show they're hoping to hook the audience and you're selling the stock just they're selling come of age story in their positioning it as a comedy in their those books are a last wattage in the big summer movies. the thing guess it is

tricky to market movies like this where you now marketing a movie marketing back story i've been down the road before i sold tied died. when the grateful dead movie we didn't have the rights we lost money on this so there is always a risk when you don't sell the music you sell the back store you're trying to sell 60 life style to mande audiences it's hit or miss. we have to leave it there sikich and a tie dyed i say get some time i checked it out. peace. love and understanding with david sikich. believe it or not there is one exchange traded fund that is that 52-week highs we are talking about the retail sector in chart talk next.

as i said on the show me times before i have trouble believing what i am seen on the trust you're taking a look at x r t this is a retail e t f it is close to 52 week highs if you can believe it or not like i said i can't. especially retailers weren't included not the big guns like wal-mart and target but yes what consumer pressure will consumer confidence problem me take a look at this basket of stocks and what credit crunch we are back at the bulls their we saw in the marketplace in september of last year pretty lame and collapse pre a id belau pre t a r p those things are under the bridge against. this x r t

exchange traded fund is now have wal-mart in it so that's interesting to know but it does have a lot of specialty retailers like guess jamboree in kohl's and j.c. penney would you compare this performance of x r t compared to the spiders if you go back one year and the spiders not even bear be anywhere near what the 52 week high in fat down 20% prom one year ago 52 weeks ago back to that x r t truck back to those 52-week highs the we are talking about around 3350 or so this could be an area of technical resistance because this is where x r t was trading before it and fell off a cliff in september. the consumer is going to be very critical from now until the holidays. he began to hear from you again job hunting send us an e-mail comments at first business x. c o m voice mail number 3126608397 will see you online back her next time.

pric

we da ecial pric ca for steak. i coold hth but let's stet him sweait out a b. i coold hth anncr. vo: save money. live better. wal-mart